Belleview goes its own way in gas-tax negotiations

Published: Thursday, April 4, 2013 at 5:57 p.m.

Last Modified: Thursday, April 4, 2013 at 5:57 p.m.

Correction: Marion County is currently sharing the 9th Cent Fuel Tax, which is a one-cent tax, with the five cities in the county, even though not required to do so under state law. The amount of the tax was incorrect in an earlier version of this article.

The city of Belleview broke ranks and decided it will go its own way when approaching the County Commission next week to discuss pending decreases in the percentage of gas tax dollars each of the five cities have received for the past 30 years.

"Belleview is going to make its own presentation," Belleview Mayor Christine Dobkowski told elected officials from Ocala, Dunnellon, McIntosh and Reddick on Thursday. "We came up with formulas that give the county the opportunity to do no harm."

Proposed cuts by the county could have significant impacts on the cities' budgets.

The other four cities agreed to stick together and present a formula that would include an adjustment for population so no city would be harmed.

In future years, the amount each city would receive would be based on state population projections. So, if a city's population decreased, the amount of gas tax dollars it would receive from the county also would decrease. And if the city's population increased, so would the money it receives from the county.

Dobkowski told those present that Belleview met with county commissioners, who asked Belleview to devise a formula. She said the formulas Belleview devised may or may not work for the other cities.

"I also believe the county commissioners have different perspectives on how our municipality has spent these funds," Dobkowski said. "Whether Belleview stands with Ocala and the rest of you isn't going to make a difference in the final distribution formula."

She said she would have to trust the County Commission.

Whether that is true will be seen on Wednesday, when the five cities meet again with the county to discuss the future allocations.

Nevertheless, Dobkowski's announcement came as a surprise and disappointment to the other officials, who left a meeting with the county in January under the impression that all the cities would work together to come up with a formula that would be acceptable to them and the county that would keep the cities whole.

Ocala, Dunnellon, McIntosh and Reddick officials said they would present a united front to the county. They also said they would form a joint committee to meet quarterly to discuss their mutual interests.

"This is not so much about formulas," Ocala City Councilman Daniel Owen said. "It's a philosophy our County Commission has. It boggles my mind why municipalities are little black holes in the county."

He said the cities are centers of commerce and for the county to be strong it needs strong cities.

But the cities are aware of their weak bargaining position.

For one thing, there are 190,000 registered voters in the county compared with the cities' 35,000 registered voters.

"The county doesn't have to raise taxes. They are going to put it on the cities," Owen said.

Through interlocal agreements, the county has given each of the cities gas tax dollars based on percentages that have been in place for 30 years.

Those agreements are about to expire. The cities have asked that the percentages that they have come to rely on for funding road projects remain unchanged. The county has said it is going to make cuts.

There are three gas taxes that the county shares with the cities. The county, under state law, is not required to share one of those taxes — a 1-cent fuel tax — but has done so, anyway, honoring the interlocal agreements.

The two other gas taxes it shares — the Local Option No. 1 tax, which is a 6-cent tax; and the Local Option No. 2 tax, which is a 5-cent tax — are required to be shared.

However, if the county and cities cannot agree on an amount, the state has provided a default formula. The county receives the lion's share of all three gas taxes.

In addition to those taxes, the county, by itself, also receives a constitutional fuel tax and a county fuel tax that it does not share.

The county has said it is no longer going to share the 9-cent tax.

Cindy Kelley, Ocala's interim chief financial officer, has said that when the cities' staffs met with the county staff, that the indication was that the county would like to go to the default rate.

Those cuts could be devastating to the cities, particularly the small ones like McIntosh and Reddick, that have few resources.

The town of McIntosh has three employees running its small bedroom community: a manager/clerk and two maintenance workers.

"It's about one-third of our budget," McIntosh Town Councilman Willie Hamilton said about the cuts.

"We can't raise taxes. They would not stand for it. And I don't blame them," he added about McIntosh taxpayers.

The city of Dunnellon will face some serious challenges, too.

"Has anyone raised to the County Commission what they are going to do with these monies, because they are going to have to take over some of these municipalities?" asked Dunnellon Councilwoman Peggy Fleeger. "We are going to be losing one big department if this happens. They are going to be responsible."

Even though it is by far the largest of the cities, if the county eliminated the 9-cent tax, Ocala would lose $500,000. And if the county resorted to the default formula for Local Option Fuel Tax #1 and #2, Ocala would lose $1.7 million.

The cities and county are scheduled to meet at 9 a.m. Wednesday at the Marion County Extension Services Auditorium, 2232 NE Jacksonville Road, Ocala.

<p><i>Correction: Marion County is currently sharing the 9th Cent Fuel Tax, which is a one-cent tax, with the five cities in the county, even though not required to do so under state law. The amount of the tax was incorrect in an earlier version of this article.</i></p><p>The city of Belleview broke ranks and decided it will go its own way when approaching the County Commission next week to discuss pending decreases in the percentage of gas tax dollars each of the five cities have received for the past 30 years.</p><p>"Belleview is going to make its own presentation," Belleview Mayor Christine Dobkowski told elected officials from Ocala, Dunnellon, McIntosh and Reddick on Thursday. "We came up with formulas that give the county the opportunity to do no harm."</p><p>Proposed cuts by the county could have significant impacts on the cities' budgets.</p><p>The other four cities agreed to stick together and present a formula that would include an adjustment for population so no city would be harmed.</p><p>In future years, the amount each city would receive would be based on state population projections. So, if a city's population decreased, the amount of gas tax dollars it would receive from the county also would decrease. And if the city's population increased, so would the money it receives from the county.</p><p>Dobkowski told those present that Belleview met with county commissioners, who asked Belleview to devise a formula. She said the formulas Belleview devised may or may not work for the other cities.</p><p>"I also believe the county commissioners have different perspectives on how our municipality has spent these funds," Dobkowski said. "Whether Belleview stands with Ocala and the rest of you isn't going to make a difference in the final distribution formula."</p><p>She said she would have to trust the County Commission.</p><p>Whether that is true will be seen on Wednesday, when the five cities meet again with the county to discuss the future allocations.</p><p>Nevertheless, Dobkowski's announcement came as a surprise and disappointment to the other officials, who left a meeting with the county in January under the impression that all the cities would work together to come up with a formula that would be acceptable to them and the county that would keep the cities whole.</p><p>Ocala, Dunnellon, McIntosh and Reddick officials said they would present a united front to the county. They also said they would form a joint committee to meet quarterly to discuss their mutual interests.</p><p>"This is not so much about formulas," Ocala City Councilman Daniel Owen said. "It's a philosophy our County Commission has. It boggles my mind why municipalities are little black holes in the county."</p><p>He said the cities are centers of commerce and for the county to be strong it needs strong cities.</p><p>But the cities are aware of their weak bargaining position.</p><p>For one thing, there are 190,000 registered voters in the county compared with the cities' 35,000 registered voters.</p><p>"The county doesn't have to raise taxes. They are going to put it on the cities," Owen said.</p><p>Through interlocal agreements, the county has given each of the cities gas tax dollars based on percentages that have been in place for 30 years.</p><p>Those agreements are about to expire. The cities have asked that the percentages that they have come to rely on for funding road projects remain unchanged. The county has said it is going to make cuts.</p><p>Right now, Reddick and McIntosh each receive 0.64 percent; Dunnellon and Belleview each receive 2.56 percent; Ocala receives 23.5 percent; and Marion County receives 70.10 percent.</p><p>There are three gas taxes that the county shares with the cities. The county, under state law, is not required to share one of those taxes — a 1-cent fuel tax — but has done so, anyway, honoring the interlocal agreements.</p><p>The two other gas taxes it shares — the Local Option No. 1 tax, which is a 6-cent tax; and the Local Option No. 2 tax, which is a 5-cent tax — are required to be shared.</p><p>However, if the county and cities cannot agree on an amount, the state has provided a default formula. The county receives the lion's share of all three gas taxes.</p><p>In addition to those taxes, the county, by itself, also receives a constitutional fuel tax and a county fuel tax that it does not share.</p><p>The county has said it is no longer going to share the 9-cent tax.</p><p>Cindy Kelley, Ocala's interim chief financial officer, has said that when the cities' staffs met with the county staff, that the indication was that the county would like to go to the default rate.</p><p>Those cuts could be devastating to the cities, particularly the small ones like McIntosh and Reddick, that have few resources.</p><p>The town of McIntosh has three employees running its small bedroom community: a manager/clerk and two maintenance workers.</p><p>"It's about one-third of our budget," McIntosh Town Councilman Willie Hamilton said about the cuts.</p><p>"We can't raise taxes. They would not stand for it. And I don't blame them," he added about McIntosh taxpayers.</p><p>The city of Dunnellon will face some serious challenges, too.</p><p>"Has anyone raised to the County Commission what they are going to do with these monies, because they are going to have to take over some of these municipalities?" asked Dunnellon Councilwoman Peggy Fleeger. "We are going to be losing one big department if this happens. They are going to be responsible."</p><p>Even though it is by far the largest of the cities, if the county eliminated the 9-cent tax, Ocala would lose $500,000. And if the county resorted to the default formula for Local Option Fuel Tax #1 and #2, Ocala would lose $1.7 million.</p><p>The cities and county are scheduled to meet at 9 a.m. Wednesday at the Marion County Extension Services Auditorium, 2232 NE Jacksonville Road, Ocala.</p><p><i>Contact Susan Latham Carr at 867-4156 or susan.carr@starbanner.com.</i></p>